The New Deal & Modern American Conservatism A Defining Rivalry Gordon Lloyd and David Davenport H O O V E R I N S T I T U T I O N P R E S S STaNfORd UNIVERSITy STaNfORd, calIfORNIa LloydDavenport_NewDeal.indb iii 7/10/13 6:04 AM LloydDavenport_NewDeal.indb ii 7/10/13 6:04 AM The New Deal & Modern American Conservatism LloydDavenport_NewDeal.indb i 7/10/13 6:04 AM The Hoover Institution on War, Revolution and Peace, founded at Stanford University in 1919 by Herbert Hoover, who went on to become the thirty-first president of the United States, is an interdisciplinary research center for advanced study on domestic and international affairs. The views expressed in its publications are entirely those of the authors and do not necessarily reflect the views of the staff, officers, or Board of Overseers of the Hoover Institution. www.hoover.org Hoover Institution Press Publication No. 642 Hoover Institution at Leland Stanford Junior University, Stanford, California 94305-6010 Copyright © 2013 by the Board of Trustees of the Leland Stanford Junior University All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission of the publisher and copyright holders. For permission to reuse material from The New Deal and Modern American Conservatism: A Defining Rivalry, ISBN 978-0-8179-1684-8, please access www.copyright.com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of uses. Hoover Institution Press assumes no responsibility for the persistence or accuracy of URLs for external or third-party Internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. First printing 2013 19 18 17 16 15 14 13 7 6 5 4 3 2 1 Manufactured in the United States of America The paper used in this publication meets the minimum Requirements of the American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials, ANSI/NISO Z39.48-1992. Cataloging-in-Publication Data is available from the Library of Congress. ISBN: 978-0-8179-1684-8 (cloth. : alk. paper) ISBN: 978-0-8179-1686-2 (e-book) LloydDavenport_NewDeal.indb iv 7/10/13 6:04 AM CONTENTS Preface vii 1 | The New Deal and the Origin of Modern American Conservatism 1 2 | Liberty versus Equality 19 3 | Limited Government versus Expansive Government 39 4 | Constitutional Conservatism versus Liberal Reinterpretation 61 5 | The 2012 Election and the Future of Conservatism 83 About the Authors 99 Index 101 LloydDavenport_NewDeal.indb v 7/10/13 6:04 AM LloydDavenport_NewDeal.indb vi 7/10/13 6:04 AM PREFACE In the aftermath of the 2012 presidential election, there is almost a frenzy to explain what went wrong with Republicans and what con- servatives must do to be a viable part of the national conversation. “Whither conservatism?” seems to be the political question of the day. Our answer is: Go back to come back. History often contains signposts for the way forward, and we think that is most certainly the case here. The particular historical trail we propose to travel in this book started when we taught a course to public policy graduate stu- dents on “The Roots of the American Order.” We concluded that the American republic was defined and established in three crises during its history: (1) the Founding crisis, (2) the Civil War crisis, and (3) the Great Depression and New Deal crisis. We challenged students to understand what a crisis is, not from secondary sources but from the perspective of those who lived and led the way through it. Each of these crises defined or redefined the very nature of the American republic. The more we studied the third crisis—the Great Depression and the New Deal of the 1930s—the more we realized it had estab- lished the frame for American domestic policy and the ongoing LloydDavenport_NewDeal.indb vii 7/10/13 6:04 AM viii Preface debate between progressives and conservatives today. The debates between Franklin Roosevelt and Herbert Hoover in the 1930s sound very much like the campaign rhetoric of liberals and conservatives in 2012. Roosevelt’s New Deal established the infrastructure on which President Obama and the Democrats are still building and expanding government. And Herbert Hoover articulated the core principles of modern American conservatism that resonate today. As two colleagues who have written twenty-five or so op-eds together in recent years, and who taught these ideas on the fac- ulty of the School of Public Policy at Pepperdine University, we decided it might be valuable to write this book to illuminate this historic frame. Before collaborating on this book, Gordon Lloyd had edited a volume that used original speeches and documents to create the Hoover-Roosevelt debate that never really occurred face to face: The Two Faces of Liberalism: How the Hoover-Roosevelt Debate Shapes the 21st Century (M & M Scrivener Press, 2006). More recently, we made a fuller exploration of Herbert Hoover’s record as a conservative, both before and during the New Deal, in coau- thoring a chapter, “The Two Phases of Herbert Hoover’s Constitu- tional Conservatism.” This will appear in a book edited by Joseph Postell and Johnathan O’Neill, Toward an American Conservatism: Constitutional Conservatism during the Progressive Era, to be pub- lished by Palgrave McMillan in fall 2013. In this book we go back again to the 1930s, but with the express purpose of coming back to public policy today. We seek to recap- ture a debate between Roosevelt and Hoover that has been lost, but which is timely today. In the name of addressing an economic emergency, an earlier generation was willing to trade in some of its liberty and reshape the republic on a temporary basis. But that emergency response never went away. Instead, it became what we call today “the new normal,” a newly reshaped welfare state from which we continue to work, and to which we continue to add. LloydDavenport_NewDeal.indb viii 7/10/13 6:04 AM Preface ix Chapter 1 reaches back to establish the New Deal frame and Herbert Hoover’s response. Chapter 5 reaches forward to see where the debate might go from here, especially for conservatism. In the intervening chapters, 2 through 4, we take up what we see as the three pivotal issues, laying out the essence of the progressive-c onservative debate between Hoover and Roosevelt in the 1930s in the first half of each chapter, then illustrating how those issues remain current in public policy today. Our thanks to those who have assisted in our work on these Hoover-Roosevelt projects, including both the book chapter and this book: Tom Church and Carson Bruno, former Pepperdine stu- dents who are now at the Hoover Institution, and Dana O’Neill. And thanks also to Pepperdine graduate students Michael Crouch and Anthony Miller, who assisted in tracking down coverage of the fate of American conservatism. LloydDavenport_NewDeal.indb ix 7/10/13 6:04 AM